The BSE index closed down 0.22% at 36,644.42, while the broader NSE index ended 0.03% higher at 10,847.90.

Road and transport minister Nitin Gadkari said the government would cut taxes on hybrid cars and not ban petrol and diesel vehicles at a time when the industry is fretting about plans to switch to electric vehicles.

The news helped the Nifty auto index close about 2.3% higher. Tata Motors was the top gainer with a jump of 7.81%.

Financial and banking stocks were among the top losers. Shadow bank Housing Development Finance Corp was the top loser on the NSE index with a drop of 2.66%. (Reporting by Derek Francis in Bengaluru; Editing by Subhranshu Sahu)